where is the value? we will talk to a top value fund investor this hour. and he will point us to three stocks that he likes right now. how about the race on democratic side? there are 17 of them on the republican side! there are three right now. can you name t2 of the 3 on the democratic side? you know clinton. you might know sanders. you know o'malley? well, those two guys -- gore. the veeps, gore and biden may be getting in. more there are more and more questions popping up on the democratic side. will gore, will biden jump in and challenge hillary? mandy is out, sara eisen's in at the new york stock exchange. >> good to see you, tyler. start with oil, watching that price move. it's been sharp today. we're off the lows of the session as we speak, actually pushing higher $42.56 is wti. earlier in the session we dropped below $42. we hit the lowest point since march 2009. we'll see where oil goes next. also want to show you some of the big oil companies. exxon-mobil is trading lower by about .25%. chevron, if we can pull that one up, that one is higher but it's been beat up a little harder, down 10% so far for month. it is down double digits more than 20% for the year. let's look at some of the stocks people love these days. when markets get volatile they often seek out the safety of dividends. high dividend payers. from are five stocks in the s&p 500 were dividend yields above 6%. here they are. frontier communications. century did t centu centurylink. you see a theme? mattel. there we break with the theme. one oak and iron mountain. but you don't get a high dividend deal without falling stock price. deere is the best performer in this group. centurylink, another telecom. the yields go up, the price goes down, folks. that's what happens. i did it once on ibm. i looked at an 8% yield, then that yield went up but the price went way down. mattel down 25%. losing one-quarter of its market value since the beginning of the year. oneok the only energy company on the list, it has fallen 26% this year. lastly, iron mountain, down 23%. this company provides what it calls information destruction services. tom brady should have called them. it might include paper shredding. if you missed any of those names, you can find the article by alex rosenberg on powerlunch.cnbc.com. it is that time of day for the oil rig counts. only rig counts rising only two last week according to baker-hughes. but that's the fourth week in a row where rig counts have indeed risen. keep in mind we're down 917 rigs from one year ago. still, fifth time in six weeks and fourth time in a row we are seeing drilling rig counts go up. a lot of these oil guys have to keep pumping because they a've already invested the money. i'm sure we will have a little more on oil in the 2:00 eastern hour. just a guess. just a guess. >> see you then, if not sooner. the dow is up for a second day in a row. something that really hasn't happened so far in august. at all. both the dow and s&p on track for weekly gains despite all the volatility. remember the 200-point slides? then big bounce back on wednesday? nasdaq headed for its third loss in four weeks. where do you find value? joining us, co-manager of the jenson quality value fund. mr. shoenstein, where do you find quality value now? any sector where it is more likely to be found than others? >> tyler, one thing that's important from our perspective in taking a quality value approach is it is not necessarily looking for downtrodden industries or places where the industry is strug sg g struggling. it is finding companies that have the quality where there is a deep fundamental base of strong performance, but the stock has been beaten up or hasn't really kept up with that strong business performance. it's a little bit of a different tilt on the value investing certainly, but it is one we think has the ability to be something that can be attractive in short periods of time when these stocks tend to pop. >> let me dance you through the three choices that you have suggested to us beginning with omni com, the big media relations, advertising company. why do you like it and why don't others? >> i think one of the things that's been happening recently with omnicom certainly is recently there was the earnings that came out from many of the media companies led by the disney drop a couple of weeks ago -- actually i think last week -- where it created a concern that with the drop in the amount of tv media buying that was taking place, that somehow that might be a tough stretch for companies like om omnicom. the reality is omnicom has been embracing the digital change that's been going on. they have nearly 200 agencies basically part of their overall conglomerate holding company and frankly they've been pretty nimble and flexible enough to be able to shift between tv media and other forms of media to give a really good package of media solutions. i think that's been somewhat overlooked in the concern around what's going on with television itself. >> pepsi has been at one time or another the target of some activist investors who probably see some of the same value attributes that you do. >> yeah. i think one of the things that probably gets a little overlooked -- this goes back to the idea of the quality of the competitive advantages. pepsi if you look at the last five and ten years has had really high-single-digit revenue growth, very consistent margins. but because of maybe some of the things happening from an activist perspective, certainly because of some of the concerns around diet and sugar sodas, it's been a little bit beaten up, at least hasn't kept up with the kind of fundamental performance it's delivered. that we think is an opportunity. >> just give me two quick sentences on your third pick. microsoft. why? >> i think it is because of the cloud and certainly i think the stock has had a little bit of a pause after the initial pop when the new ceo came onboard but i think it is actually poised to take advantage of a next evolution in terms of everything that's happening in the computing world. >> you just mentioned some value and you mentioned three quality companies. eric schoenstein with the jensen quality value fund, thanks so much. kate kelly has a news alert. just getting some quartly filings on some of the biggest players in the market and what they're holding. the dallas-based hedge fund manager kyle bass, an interesting investment in the sense that bass is going long a number of big pharma names. to give you a sense of some, new positions after of them. perrigo, 836,000 shares. mylan, another relatively large stake. almost 800,000 shares. pfizer, merck, eli lilly, value yan val valia valiant. bass has reportedly been shorting a number of biotech stocks and in the same process challenging the legitimacy of their patents with the u.s. patent office. some of those names he's reportedly on the short side with, acorda, j&j, celagain. it is not clear whetherer's getting into some merger arbitrage. either way, some really interesting new positions here from bass. >> kate, thank you very much. big news on sysco, the food company -- not the routing company. the stock popping. scott wapner first with that news on "fast money halftime report" within the last hour. scott, this is a big name. >> you guys were just having a conversation with one of your last guests about the activism that had taken place in pepsi. your guest was referring to nelson peltz. a gentleman, an investor with an extensive amount of experience in the food business now takes a 7% position in the food service company sysco. $1.5 billion, slightly more, 42 million shares. trian becomes the largest individual shareholder in sysco. i'm told they'll seek board representation. unclear at this point if mr. peltz himself will be one of the nominees but there are a couple of interesting things about the timing here. why the filing today on a late summer friday afternoon? well, first and foremost, it was the tenth day after they had accumulated that 5% threshold so they had to report today. but what makes it even more interesting is that the nominating window for potential board members closes a week from today on august 21st. what does that mean for where we go from here? well, they could come to some kind of an agreement. sysco could expand that nominating window and push it out. or there could be a proxy fight which i'm told is not, by any means, out of the question. so why this company? why shares of syy? why sysco, the food service company, and how did it get on nelson peltz's radar? for one, i told you about the extensive experience he has. kraft. mondelez. the list is so long and distinguished in the industry of the food business where he has been in the past. but there are a couple of issues specifically with sysco that make it perhaps that kind of target that an activist investor, the likes of mr. peltz, would focus. it's underperformed the s&p over the past five years. earnings are down. there was that most recent merger plan with u.s. foods which was terminated following word that regulators were not going to allow it anyway. all told, that probably cost the company around 1 billion mr. there was a $300 million break-up fee that sysco was forced to pay to u.s. foods. there was a couple of -- tens of millions of dollars elsewhere that had to be paid out as a result. you look at a guy who has focused on improving margins, improving cost cutting, returning cash to shareholders, and that's perhaps why this became the target that it has for nelson peltz, tyler. it's been an interesting year. there was the proxy fight and the loss with due ponts. there was the most recent stake revealed, and a large one at that, in pentair. now we learn of yet another new position, and a large one, in sysco. again, more than 7%, $1.5 billion worth, and some 42 billion shares. >> an underperformer vis-a-vis the s&p and probably a wounded management of a that proposed merger with u.s. foods was scotched by the federal regulators. scott, thank you very much. to kate rogers, "market flash." >> we're watching shares of general electric surging higher hitting session highs on a report citing sources that the company is expected to win eu approval for its proposed $13.78 billion buy of french alstom's power unit. the stock is higher by 1% right now. going in the opposite direction, shares of el pollo lowco getting fried today. we'll tell you what's driving that crazy selling. the story of the week, the u.s. dollar up 3% against the yuan as china devalues its currency. what can the u.s. do in response? you're watching cnbc, first in business worldwide. a developing story. reuters is reporting that the u.s. government will allow limited sales of u.s. crude oil exports to mexico for the first time. this is another bid to loosen the ban on exporting domestic u.s. oil. the report says instead of paying cash for the oil, mexico will swap imported mexican oil for the u.s. oil. remember, there's a four decade-old ban on exporting u.s. oil. it dates back to the arab oil embargo of 1973. many say it is completely outdated. wti crude oil down 55% in a year. today it is having a little bounce, $42.55. brent though, the international benchmark, is still headed south. shares of jcpenney are up big today after its second quarter profit report. it still lost money. sales were better than expected. the stock still down more than 60% over the past three years. el pollo loco is low today. coming in. at the very low end of previous estimates. i guess that's good news for the chickens. darling ingredients, a stock we don't hear a lot about. it does have a market cap of more than $2 billion. the stock is soaring despite an earnings miss. go figure. but the company announced a plan to buy back up to $100 million worth of stock and that will give your stock a jolt most of the time. there it is up 14%. let's look at the action in currencies. the euro/dollar right now, euro is weaker against the u.s. dollar. it is at 1.11. it's been an eventually week in currencies. the headline, china's currency slide. took a breather overnight after three days of declines triggered by beijing's surprise devaluation. my next guest says beijing made a clever move. joining us from cornell university, welcome to "power lunch." the market didn't like this move but you did. why? >> i think it is a very clever move because this is a reform that the chinese central bank has wanted and the u.s. and international institutions like the imf have been asking for, greater exchanging flexibility. the chinese chose a very good time to do it when the pressure is on the yuan to depreciate which helps the chinese economy at a time when it is very weak. that modifies the central bank's move. in addition it satisfies international critics because after all, this is exactly what the world has been asking for and china it is giving it to them. >> another perspective would be -- that is the positive spin, no doubt. someone else might say, they've had to cut interest rates four times, pump liquidity into the system, increase the amount that banks can loan and now they're devaluing their currency for first time since 1994? perhaps they look a little bit scared here and worried about this slowdown. >> certainly it is a valid interpretation this could be an act of desperation because they have certainly tried all the measures you mentioned but none of the other moner tary moves a gaining traction. the yuan is the only currency that's depreciated by only 2% relative to the dollar over the last year. virtually every other major currency has depreciated a lot. what do the chinese anticipate? further dollar strength, perhaps even greater dollar strength if the fed does its rate hiking signal. they're just signaling that they won't leapt the currency appreciate further. wipe the economy is weak. >> you may be in support of it but many are not, including the current front-runner for the republican nomination, donald trump. speaking in michigan saying that china is trying to suck the blood out of the u.s. it's gotten rich off of us. divisive talk here in direct response to this devaluation. how complicated does that make next month's visit, the first state official visit to washington from president xi? >> it is going to get very complicated because certainly the problem here is that is no matter what china does -- even if it is doing exactly what the u.s. has been asking it to do -- the yuan is going to depreciate and given the strength of the u.s. economy and weakness of the chinese economy, we are going to see the u.s./china bilateral trade deficit continue to rise and that gets a lot of attention on capitol hill. in the one hand there will be a lot of pressure coming from the republicans on capitol hill, but china is going to say look, we're just doing what you told us to do. now you want us to interconvenient? >> it is not just the republicans, democrats, too. many others have been against it. complicated to say the least, relationship between the u.s. and china. it's been an up and down week for stocks so where should you put your money when the markets are on this kinds of roller coaster? we've got some investing advice for you. plus with being some new old faces could be joining the presidential race. what's it mean for hillary clinton? "power lunch" will be right back. moment to take a pill? or stop to find a bathroom? cialis for daily use, is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. could joe biden and al gore enter the presidential race? really? john harwood joins us now. i've heard about the talk, john, about joe biden. he's apparently on vacation and taking a lot of counsel from friends, advisors, family. i hadn't heard about gore. is this serious? >> reporter: no. i don't believe it's serious. about gore. at all. and with respect to biden, i think it is minimally serious. look, joe biden has always said he was going to consider taking a look at a presidential race. he's run twice before. neither of those were successful in his own right, of course he was put on the ticket in 2008. he's gone through a terrible time in his family with the loss of his son. he has been tending to that. now his aides are doing due diligence, checking out the possibility. everybody of course is the mindful of the struggles that hillary clinton has had with the e-mail story and other aspects of her campaign that create a renewed sense of possibility, especially as bernie sanders has come up in the polls. but i don't think at the end of the day that joe biden is going to end up getting into the race. >> where does the gore talk come from? >> you know, both of these men, like many other people in politics, have large circles of friends, donors, political acquaintances, who have been on their side who doubtless are stirred by the prospect of another race, who want to generate some good feeling for their candidate. so i think there's talk that rises up especially when you've got a spate of unflattering headlines for the front-runner of the democratic race. i just don't think, given where we are in the calendar, the scale of an effort that has to be set up with be that it's realistic for al gore certainly to get back into it and i think it is extremely difficult for joe biden. >> as you sort of say there, john, i think politicians are partial to flattery. right? >> yeah. i think this is a way that people create good feeling for those politicians themselves, by flattering them with the idea that, hey, you could do this, you still got it. sort of like the retired football player who said, yeah, i can still get out there and score touchdowns. >> that's right. that's right. i'll tell you funny story. i was at the commencement of yale university that joe biden gave a speech at. he was referring to the fact that yale has lost for eight straight years to harvard. he said you've been so close, so close for eight years! i know exactly -- to something you dearly want. i know exactly how you feel. it was a very funny line. >> he absolutely does. look, lines like that, humility like that is one of the reasons we love joe biden. >> you couldn't help but like him. >> he's an extremely endearing human being. all the more so now that we see him dealing with such dignity and grace and class with the grief that he's experiencing. but it is a whole different thing from a standing start mounting a big campaign against a front-runner with a lot of assets even though she has some problems. >> john harwood, thanks very much. want to check on gold prices closing right now with a little bit of a loss. we are seeing a strong dollar. could have an impact. $1,112.60. gold actually a pretty good week. silver, copper, palladium, copper interestingly steadied after a week of volatility on the back of the chinese news. palladium managed to eke out a gain. the bond market, rick santelli tracking the action for us at the cme. hi, rick. >> hi, tyler. rates spiked up a little bit earlier because renters are paying a bigger chunk in the form of what they have as disposable income for rent. 2-day chart of the longest maturity on the curve, 30-year bond, 2-day kind of flat at this point. if you look at a wider picture, it held the annual settlement of 2.75 on an intraday basis this week and it held and is moving higher. it's all about the dollar. what a weird week for the dollar. if you look at a two-day chart of the dollar index, it definitely paid attention briefly to the 8:30 eastern number. open it up to july, it actually has a downward trend. the dollar index on the week is down over a penny because the euro settled under 110 last week, well over 111 this week. but the yen is unchanged and it is much better off against the chinese yuan. so if you're trading fx, you should be paying attention. tyler, back to you and have a good weekend. you, too, rick. thank you very much. if you've been a biotech investor this year you've probably done pretty well. but this week -- not so much. we'll ask a top biotech analyst how to play it from here. and concluding our series "back to business school." how are deans getting more women interested in careers in business and finance and going for their mbas. you're watching cnbc, first in business worldwide.re armed wity new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. believe it or not, the dow and s&p are on track for weekly gains despite the volatility. joining us, susan fullton, president and founder of fbd capital part yernerpartners, an columbus, president of tower square management. greg, did you take an opportunity to buy during some of the big dips this week zp. >> i think we have to be a little bit of cautious. we haven't seen the buy the dip mentality. the beaten down names, there's not been a lot of interest. i think we'll be rocky until we get some clarity on the september rate hike. >> susan, i know you are a fan of health care and technology. did you get some good bargains? >> we had an opportunity to pick up health care fairly heavily over the first part of the year. i can't say that we were aggressively buying this week but we have been investing fairly heavily in technology and in health care. >> craig, you like financials. do we needed to see yields bottom and the fed actually raise rates for that group to take off? >> it would definitely be a catalyst. i certainly think there's no great time to raise rates. we've seen there's no perfect time but i do think the september period is when we're going to see the first rate hike recognizing that it is important to get it out of the way this year before the first quarter of next year because we've seen three straight years of weak first quarters. that would be a good catalyst for financials. >> beside the fed, susan -- go ahead. >> i don't think the fed worries about whether it is a good time to have a strong first quarter. i think the fed has bigger issues in mind. i don't think we'll see a rate increase until after the first of the year. particularly with the chinese playing games with their currency. i just don't see a catalyst. it is going to be so gradual anywhere from what we've been led to believe that it is not going to mean much. i remember sitting in a conference once and a money market manager said that the fed had to raise rates because they weren't able to make any money with interest rates at what they were. well, the fed doesn't have to do anything that it doesn't think is financially prudent. >> that's fair. so china news you thought was a big deal. what do you do, i don't know if you have any names with chain exposure -- >> no. i have no -- no. ingrew up in asia. we have no china expo slur. we made some day have china exposure but i will probably be dead. >> okay. craig? you actually think that the fed is on track to move. >> yes, i do. i think japan is interesting because the china devaluation has a much bigger impact on ot japanese real economy and the yen. i think you'll see additional stimulus come out of the bank of japan. that's a good catalyst for japanese equities and i also think there is some improvement in the japanese economy. you see that in lending picking up 2% and we haven't seen that in a long time. >> susan, give us some tips if you are looking domestically focused without a rate hike this year, what are you buying z ing? >> we like apple right now. we think that it is weak and that it is a company that continues to innovate and create. >> but you said you didn't have any china exposure. >> well, we do have china exposure with apple. we do not have any chinese companies exposure. that was my misstep. >> craig, are you a buyer of apple? do you think the market needs apple in order to rally? >> i do like technology here in the sense that growth has been outperforming value. health care's too rich for me so i think technology is a place where you can source growth at a much more reasonable price. >> all right. guys, thank you very much for some of the recommendations and your picks. thanks for joining us. go to powerlunch.cnbc.com to see how susan and craig are playing a china's kurn su devcurrency d. biotechs are up nearly 40% this year. but in just the past week the sector's had somewhat of a breakdown, off about 6%. just since last week. our melissa lee is live in san francisco with michael yee of rbc capital markets. >> tyler, thanks. michael, always great to see you. it does seem like sentiment has really turned in the biotech sector. it started with biogen's report. there's lingering concerns about the help-c franchise with gilead. bank of america had a note out this morning that showed the weakest inflows into health care and biotech funds in 11 weeks. are you getting the sense investors are getting baltimore concerned? >> we've been out marketing over the last couple weeks. it's been a luge run in 2015 and over the last five years. i would definitely sense a bit of a shift in tone from fund managers with biogen having millsed the quarter and guiding their big drug flat, gilead obviously talking about hep-c slowing down. i would sense a shut of a bit more cautious tone. we are still fundamentally positive about the sector because it is still a great growth sector for a lot of other names. >> risk/reward still works out even though the biotech etf is up 19% so far this year. you say going into 2016 risks are there because you enter the presidential election cycle and there will be probably a shift away from these health care names, concerns about increased regulation, et cetera. >> i think in 2016 you're going to have to be more stock selective. the past couple years you could have been essentially throwing darts and all these biotech names were going up. in 2016 i don't think every stock is going up. you have to stick to names with earnings up side like celgene. you just have to be more stock selective. >> vertex, kyle bass and his latest filing revealed a stake in vertex which is interesting because he's been short a lot of biotech stocks trying to threaten their patents, trying to sue and basically pose a challenge to their patents. what's your thinking about what kyle bass could be up to with vertex? >> he could be hedging some of his shorts. i need to make a call over to kyle and see what he's thinking on vertex. it is possible that this is just a fundamentally good secular story that doesn't have an ip issue. it is the first in class cystic fibrosis drug that treats the underlying cause of the disease, whereas some of his other patent filings and other shorts were on sort of some drugs that were a little more questionable in the ip. i need to call kyle. he could just be long on a positive good thesis there. >> some of the things you mentioned are the large cap biotech names. how about smaller ones, particularly in the cancer immuno therapy area? >> we don't specifically have a farmal rating on some of those names. those have been high flyers this year. you are seeing a pullback with the space, with some questions around some of the safety of those. we don't have a formal opinion on those. i would say that names like that are reflective of the fundamental positive transformational things that are going on in biotech. cart. gene therapy. we feel very good about some of those names as well. >> michael yee of rbc. back to you. >> beautiful shot there in san francisco. let's take a look at stocks right now closing out the week, it looks like with a gain, some calm after a very turbulent week. the dow is up 56 points. s&p up .25%. nasdaq up .01%. ahead a top tech manager tells us why he is looking for big moves from social media. don't go anywhere, you're watching cnbc, first in business worldwide. ah! aflac? aflac! i thought you said this guy was the best? oh, he's a horrible stylist. gah? but he's the best at paying claims fast! really... mmhmm. paid mine in just one day. one day? yea. aaaflaaaac! in just one day, we approve and pay. one day pay, only from aflac. energy infrastructure company kinder morgan was added to the conviction buy list at goldman sachs based on a 6% dividend yield in the diverse portfolio of energy assets. nordstrom reporting quarterly share 3 cents above estimates. the retailer also increasing its sales forecast for the year. king digital beating earning estimates but falling short in its number of monthly active users. maker of the candy crush online game also said gross bookings would further fall as new game launches are delayed. we continue our week-long look at what is being taught at the nation's top business schools in this upcoming semester. dean of the kelly school of business at indiana university and dean of george mason university school of business in northern virginia. welcome to you both. how is the complexion of the business school classes -- how is it changing? more women? more international? what? >> well, there certainly is some change in terms of the student composition but the big changes that we're seeing include more specialized types of degrees, degrees that aim toward very specialized audiences. i can give you just a couple examples. we have a business of medicine program, an mba for medical doctors. that's an illustration. we have mba program for the nfl players association and one for educators. so you can see that we're tailored our courses more toward very specialized audiences. >> it is not just general business knowledge that you're trying to impact but knowledge that would help people in specific careers sara, how do you react to that? and tell me a little bit about your student body, who they are, where they come from, and how it's changed over the years. >> well, our student body, we've actually grown from nothing to something in just a few years. 34,000 students, 13 0 students n campus. i would echo that specialized masters programs are an area we see, too. we have a special foe us cuss on national security, critical defense. these are areas that we also look at. in addition we have a specialized masters in cyber security that actually is a joint effort between three schools -- engineering, business, and public policy. i think that's the other trend as you see cross curricular activities to draw together different schools within the university to deliver an education. >> so sara, the school is relatively new. how do you start from basically zero and create a business school, and how do you make the decision that our school is going to stand for this, this is what we want to be known for as a way to differentiate yourselves from all the other business schools that are out there? >> i think we have an advantage -- being young and ambitious and the largest state institution in the commonwealth of virginia, we have really been able to leverage strengths without having to think about high-bound traditions of the past. so when we think about it, we think about being globally engaged but regionally relevant especially in our graduate programs. but also in our undergraduate programs. entrepreneurship and innovation is a huge piece of where our focus is today, not just as a school but across the entire university. >> i.d., where are your students going to work after they finish and is it different now than five or ten years ago? >> our students go close to close and including international locations. we have more than 300 companies that come to campus to recruit our students and over 700 companies overall that recruit. we're seeing everything from multi-national companies that focus on marketing to finance-based companies and financial institutions, to companies that are more entrepreneurial and corporate innovation is a key part for them. we're seeing students going everywhere right now. the market is very good for these students. our placement rates are exceedingly high and i think that's one reason that our undergraduate program and our graduate program are so very highly ranked by corporate recruiters. >> do you still get as excited looking to the first day of school as you used to? >> absolutely. absolutely. every new crop of students keeps us young and energized and we look forward to all of the new introductions we can bring into the classroom by keeping current and bringing those new concepts into the classroom so students can really focus on what's important in the business world. >> i think for everybody that first day of school is one of the most highly energized, exciting days of all. folks, have a good first day of school and a good school year. thanks so much. sara. check out fewerfunds cyber etf. with cyber attacks on the rise, is now the time to get into cyber security stocks? the best students in the space still ahead. plus, getting out of the rat race. >> coming up, an investment banker makes her move. >> it was almost as if i was made to be on a bicycle. >> announcer: leaving wall street to become a professional cyclist. escaping the cube next. it took serena williams years to master the two handed backhand. but only one shot to master the chase mobile app. technology designed for you. so you can easily master the way you bank. no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. i'm a gas service rep for pg&e in san jose.. as a gas service rep we are basically the ambassador of the company. we make the most contact with the customers on a daily basis. i work hand-in-hand with crews to make sure our gas pipes are safe. my wife and i are both from san jose. my kids and their friends live in this community. every time i go to a customer's house, their children could be friends with my children so it's important to me. one of the most rewarding parts of this job is after you help a customer, seeing a smile on their face. together, we're building a better california. wonderful, crazy mornings. we figure you probably don't have time to wait on hold. that's why at xfinity we're hard at work, building new apps like this one that lets you choose a time for us to call you. so instead of waiting on hold, we'll call you when things are just as wonderful... [phone rings] but a little less crazy. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. welcome back to "power lunch." i'm kate kelly with some breaking news on a possibly softening in the u.s. stance's export on crude oil from this country to other countries. the commerce department indicating just moments ago in a statement that they intend to look favor pli on certain applications for exporting u.s. crude oil in exchange for mexican product. here's what they had to say. consistent with provisions that allow for exchange of u.s. crude oil under certain circumstances and that support exchanges with mexico specifically. bis is acting favorably on license applications for the exchange of u.s. crude oil for similar quantities of mexican crude oil. bis is a section of commerce. this means that the industry's lobbying for quite some time for a lift on the ban of crude oil exports which has been a long-standing issue for them in this country especially as we become more independent in the energy space, they're having some success and they're starting with mexico. back to you. >> kate, thank you very much. i take from one kate and i give to another kate. we do want to bring some attention to the stocks that are moving on news that kate kelly just mentioned. oil drillers, dime offshore, ensco, transocean, all down. ever dream of becoming a professional athlete? it took years for one investment banker to find the right sport but when she did, she quit wall street and turned into a world class cyclist. >> i look back on it retrospectively and think, my god, i don't think i would advise anyone to do what i just did. >> hi. i'm a professional cyclist. but, i used to work on wall street. when i was at lehman brothers just working in a cubicle all day long. i kind of felt trapped. inwent to san francisco to have thanksgiving with my sister, angela. >> we figured, oh, we'll have her come to a bike race with us. >> i'm angela, her sister. >> i came back from that trip, i got to get a bike. this is awesome. a friend of mine said you should do this women's clinic. it was an introduction to women's cycling. i was kind of hooked. i started racing all summer. >> i get a text every saturday morning. i won my race. great! still not putting a lot of credence into it. >> it just kind of clicked. everything felt right when when i was on the back. >> then she went out and would beat professionals. >> i was like wow, you're really fast. >> i was like okay, i'm going to take a year off. i quit my job in july 2008. i just moved out of my apartment. i started balling. inthought what have i just gotten myself into? that weekend i won. that was lucky. then i won another called the cascade. >> after she won those races people approached her wanting to be on their teams. 1 in a million. >> almost cinderella like. if somebody would tell me i'd be sitting here in my sixth year world professional going to multiple world championships, i'd say no way. one year you make one salary, next year you are in a different salary. it is important to realize there are success in other things than just financial rewards. >> it is fun to watch a race. >> this olympics i want to go and i want to medal. i think i'll probably transition out in a few years. i've got this whole other world of experience now which i can't wait to bring into the next step of my life. >> for more details on how she and others have made drastic career changes, that was one of them, go to cnbc.com/escaping the cube. back here in the cube, let's look at this hour's "power points." another weekly build for u.s. oil rigs. still down from a year ago but the down trend appears to be stabilizing, shares of sysco soaring up almost 11%. nelson peltz trian partners taking more than a 7% stake. scott wapner reported that news about 1 1/2 hours ago. the u.s. government loosening a deck aids-old restriction on u.s. domestic oil exports. reports say a shipment's going to go to mexico. money won't be exchanged. instead the currency will be oil. the u.s. oil will be traded for mexican oil. how does that work? u.s. ban went into effect after the arab oil embargo back in 1973. if you missed any of the big stories over the past hour, go visit our website, powerlunch.cnbc.com. it happens once every two years and it is big. talking about the disney expo. disney's biggest fan event. this year it is all about jedis and avengers. our jane wells who i think is a fan is there. >> i sure am. you know this line is longer than space mountain. speaking of space, it's the hottest day of the year out here. outside of the heat bob iger is preparing for george lucas. we'll have the latest after of the break. you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here, we're here, and we've got your back. legalzoom. legal help is here. 40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town, the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're not out for long.they're coming back. one of the biggest, most popular active live managed mutual funds, the fidelity contra fund, is be being dropped by ford from its retirement plan choices. that means an estimated $900 million in ford employee money is going to be pulled from contra fund which has $113 billion in assets. fidelity had no immediate comment. ford says it makes such changes from time to time to suit its employees' needs. other fidelity funds will remain available. for more on this story and it's a big one, go to powerlunch.cnbc.com. a galaxy not so far away, we are talking about anaheim, california, disney's biggest fan event is under way. our jane wells is there live. jane? >> reporter: hey, of all the things that are being celebrated here, the people are going craziest over "star wars." inside right now george lucas is being honored as a disney legend. as much as this weekend is about disney's past and future, it is also about "star wars" history and more importantly its future. this will be the first big film of the franchise under the disney banner to be released later this year. will probably be the biggest movie of the year. how could it not be? bringing back the original characters. there's so much anticipation. there's a whole bunch of new ones. we are slowly starting to learn more about the movie. presumably takes place 30 years after the return of the jedi. we hope to learn more. they have been doing some deals with anaheim about some land. inside ceo bob iger on starch promise george lucas he's in good hands. >> we knew we were taking on a huge responsibility in terms of the legacy, quality and importance of "star wars" to our culture and to the "star wars" fans. we're doing everything that we can to protect and preserve it as well as to fuel it with new stories, characters and galaxies far, far away for years to come. >> reporter: we're also learning more about shanghai disney this weekend. and also the marvel franchise. marvel wasn't much at comicon. but of all tens of thousands of people here, they really want to know everything about "star wars"! every time some clip shows up or someone walks by, the fans go wild. back to you. >> all right, thank you very much. jane wells. that does it for the first hour. >> that's all for us, sara. see you next week. have a great weekend. over to you, brian, for the second hour. may the force be with you both this weekend. it is just after 2:00 on wall street, 1:00 p.m. in mexico city. we are following a big developing story in the oil market. a senior white house official telling reuters that the u.s. will allow limited sale of u.s. crude oil to mexico for first time. in exchange, america will get imported mexican oil. this comes eight months after mexico formally sought permission for an oil swap. but morn importantly it marks another step toward easing a 40-year-old ban on exporting u.s. oil that dates all the way back to the oil embargo of 1973. crude oil a little higher right now on the session. we'll have more on that story throughout the day. let's go right down to the nymex where crude oil is trading with jackie deangelis. is this a story that people are paying attention to? kind of a fly under the radar headlines. >> good afternoon, brian. traders here are paying attention because as you said, it is another sort of chink in the armor when it comes to this idea of exporting crude oil. firms have been lobbying for this for some time because the embargo is antiquated as far as we're concerned here in the united states with the amount of oil that we have. what traders are saying this reminds them of is a tiny step towards a similar deal like what we have with canada. remember, mexico opened their industry to outsiders this year. they're really trying to build their business and we are really lobbying to try to get some of our oil out. we do ship very light crowd, small amounts of that, out right now. we don't know how much this swap deal is going to be, how many barrels per day it will be with mexico. but again it is sort of another step in this idea that this is something that the country should really think about doing on a more expanded basis. do want to mention that traders are saying that the prices are a little bit higher today as a result of this, but we're off of session highs at this point. going into the weekend they're still a little tepid, not sure which way they want to go with the crude oil trade at this point. next week will be definitely be a key, key week for oil prices because we did test those lows that we saw earlier this morning in the session that near 6 1/2 year low. testing lower lows traders tell me is always a sign we're going down from here. >> not a lot of pomp and circumstance around it yet. we'll see if the administration does anything. oil's drop claiming another corporate victim. hercules offshore filing for bankruptcy late yesterday. company saying its business worth to $725 million by liabilities are $3.4 billion. just two years ago this stock was trading around $8 a share giving the company a market value of more than $1 billion. today the equity basically worthless and the company has a market company of just $13 million. many other oil and gas company bonds are trading very weakly. if oil does not recover meaningfully soon, it it is easy to expect many more oil bankruptcy could be coming down the pipe. oil's drop not necessarily good news for all you drivers either. despite oil's decline, wholesale gas prices are actually up 14% since the beginning of the year. what gives? bizarre current because of concerns about refinery capacity in the west and midwest. a gallon of regular gasoline around the country -- california, lucky you, still leads the nation with the most expensive gas on average of 3.$61 a gone. $3.61. michigan creeping up. we've got the lowest gas on average in the region in new jersey. still the lowest gas prices overall in the country, south carolina, you average just $2.19. even as oil prices are reaching a six. year low, the bp financial spill outside chicago is jacking up gas prices across the midwest. that's what's happening in michigan. what's this mean for refineries and their stocks? roger reed joins us now. roger, as oil prices have come down, we've seen shares of the refiners like valero go up. is that a deserved and smart move by investors to bid those stocks higher? >> there's a lot of things that are helping refiners but quite obviously gasoline demand has been the story this summer. and then the cheap oil has been the other component of it. both factors together, yes. it made sense to rotate into the refiners. it is fair, though, to say a gasoline is a seasonal business, and so chasing something seasonal is maybe a little bit more of a risk at this particular time of year. we've highlighted that to investors. >> we always ask the oil stock analyst if they're surprised by oil's move down. you're an oil refinery analyst primarily. are you surprised in were you caught off-guard? >> yes. yes, we were. that you could get some softness in there but the degree of the move is more than we would have expected. >> what do you attribute it to? >> i mean i think in the end it is supply and demand. if you look at the market, it is physically oversupplied. storage is fairly high. and the market participants have react the differently than you would have expected. right? typically if the market gets oversupplied there's a pullback. instead, opec's gone for market share. there's been no obvious showdown domestically, nor as you look globally do you find a real pullback yet in terms of supply. we will get that but the fact we haven't gotten it yet is why we see the market as soft and weak as it is. >> we just showed your outperform ratings. valero, phillip's 66. pbf has basically hit the bottom range of your price target, $35 to $37. valero looks like it's got the most up side. would you consider vlo your top pick? >> we've been paying attention to coast refiners overall and gulf coast number one. yeah, valero has been a top pick and reap mai and remains one of our favorite names here. pbf has recently done an acquisition and there's a lot of up side potential here not fully reflecking everyone's expectations. we'll trade you some of our cheap gasoline for a little bit of cooler air down here. >> we'll do that trade any time. speaking of houston, let's check in on our exclusive "power city index for houston. we've got 38 of these power city indexes across america. there's been some serious pain in h-town stock over the past 909 days. houston pci is down more than 11% in this time. note the little pop in the past week. the far right of your screen. no surprise all the energy related names are down double digits since may. though some of the refiners with i are reflected in our houston pci have indeed come up. . let's get back to the macro market and take up with bob pisani on the floor of the new york stock exchange. >> you are talking a lot about oil. oil stocks have had a great week and nobody's happy about it. there's a reason for that. some of the big names, conoco up strong, marathon's up almost 9%. this is the best week for oil, big oil, we've had in a long, long time. why is nobody happy? because we've seen this movie before and we've all gotten burned by it. everybody plays the xop. this is the oil and gas exploration and production etf. for week here, we've had three days with the up trend. we hadn't seen this since april. everybody said maybe it is safe to go back in. then they drop for two days in a row. year to date, this has happened twice before. they tried to buy like crazy at the end of january and they got burned. they tried to buy like crazy at the end of the march, they got burned again. now trying to buy again this week and getting burned a little bit again. still not losses if you bought earlier in the week. we'll have a much better -- need to have better rally before we start seeing real believers out there. morningstar released a monthly report on fund flows, this is the movement of money into and out of mutual funds and etfs. two trends very strong here. one, we are continuing to see outflows from u.s. equity funds into international funds. secondly, we are continuing to see outflows from active investments, that's mostly mutual funds, into passive investments, that's mostly etfs. these outflows from u.s. funds to international, morningstar was very strong in their commentary. outflows from u.s. equity funds for only the first seven months of 2015 exceed any previous annual outflows since 1993. in other words, a lot of money is going out. this makes some sense to me because we are seeing for the first time in a while places like europe, notably outperforming. in other words, flow follows performance. people put money into winners. they're throwing a lot of money into europe. europe's up 5% and european ex-currency funds like the wisdom tree hedged europe is uj 1 up 12%. money going into passive funds, we've known about that for a long time. people are looking for cheaper ways to invest from actively managed funds and etfs and lower cost funds just make a lot of sense. the trends are picking up here, brian. >> i agree. i just get concerned when mom and pop are chasing performance. two years ago may have been time to get into europe. who knows? could be a boom for the next five but chasing performance -- >> it's enough to make you cry. but we stopped being traditional investor types. adam smith investor types after 2008. we're all behavioral economists now, brian, you and i. we know what people do. they move money in when the markets are moving up at the top and they tend to pull out towards the bottom. they don't buy low and sell high -- >> that's misbehavioral economics. >> it's still -- you can see it right here. >> have a great weekend, bob. let's get a "market flash" with kate rogers. >> watching perrigo shares higher by 1% on news that hedge fund paulson and company is voting all of its 21.9 million mylan shares in support of the proposed merger between the two companies. earlier today we told you paulison's buying pa ining perr shares. his fund owns 6% of mylan. check out shares of the san francisco based company yelp, up by almost 5%. this is after some positive comments from gil simon on "fast money" last night, saying yelp should be four times what it is currently in market cap. he's certainly seen the roller coaster ride in shares of yelp. one reason why you might want to listen to apex capital, their biggest position is netflix and that's a position they took three years ago. check out shares of purefunds cyber etf, up more than 11% this year. where are the best opportunities in this space? joined now in san francisco by steve conan of web bush. talk about the hope of a lot of investors, that is that one of these stocks is going to be taken out. specifically in sysco's quarter they talked about the strength and cyber security. separately they talked about their willingness to make an acquisition in the near future. where did your mind go when they made those statements? >> yeah. well, consolidation is a fact of life in software and in cyber security in particular. oftentimes the newest technologies with the most effective technologies because hackers have not yet figured them out. that means leaders to remain leaders need to keep on the cutting edge. a lot of that happens through acquisition. >> so let's go through some of your picks. one stood out to me and that would be proofpoint. they focus specifically on e-mail hacking and that they might be beating out cisco and symantec. could they be a target? >> our investment thesis is not predicated on takeout but any of the stocks we'll discuss today are very viable takeout candidates. in froproofpoint's case they haa long sustainable growth ahead of them. we think they will be able to continue organically. they are the leader in e-mail protection technology. they're about 10% market share. they're well on their way to surpassing the market leaders we think in the next couple of years which our cisco and symantec. proofpoint is also good at dealing with advanced forms of malwear that traditional systems cannot easily detect. proofpoint does this through cloud architecture and big data architecture. >> in theory whenever we get an attack, it is a catalyst, sometimes it is, sometimes it isn't. is the thought that perhaps there could be funding or more emphasis on cyber security in the future that could help this group? >> i think there are lots of catalysts. part of it certainly is the headlines. there is a growing perception of the risk that hackers and nation state groups actually present to commercial enterprises, as well as government organizations. but it is not only a perception, it is real. hackers are getting more sophisticated in their methods and their ability to penetrate the defenses of modern corporations. i think you'll see continuing attacks, and escalation in this terms of the type of damage you see from these hacking attacks. i think that's the single greatest catalyst. i also believe that we'll see more coordinated federal efforts with the commercial sector to counter these threats. >> steve, thanks for your time. appreciate it. here's what's ahead on "power lunch." an historical moment in havana as the u.s. flag goes up for the first time in a half a century at the embassy. much more ahead. also, a top tech investor gives us the one stock he absolutely loves and the one stock he absolutely loathes. and some friday sports trivia for you. can you name the first baseball player to make more than $1 million per year? there's a real reason that we're asking you this, not just for trivia sake. we'll let you know our take on it when "power lunch" returns. you're watching cnbc, first in business worldwide. my name is chris hughes and i am a certified arborist for pg&e. i oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure. at pg&e wherever we work, we work hard to protect the environment. getting the job done safely so we can keep the lights on for everybody. because i live here i have a deeper connection to the community. and i want to see the community grow and thrive. every year we work with cities and schools to plant trees in our communities. the environment is there for my kids and future generations. together, we're building a better california. welcome black to "power lunch." i'm kate rogers with a news alert on food distribution company sysco on today's trian partners taking a 7% stake in the company can. sysco says they welcome clap rative discussions with investors who share our interest in kreeing value by marketing and delivering great products to our customers with exceptional service. we expect to continue to engage with trian in a constructive dialogue. history being made in havana, cuba. the american flag being raised over the u.s. embassy for first time in more than 50 years. cnbc chief international correspondent michelle caruso-cabrera live in havana for this historic moment. michelle. >> reporter: hey there, brian. the defining moment came when the three marines who lowered the u.s. flag for the last time back in 1961 were the very same three marines who raised the flag again today to mark the moment of the re-establishment of diplomatic relations between the u.s. and cuba. john kerry became the first secretary of state to visit the island since 1945 as he addressed those who were invited, he said "the u.s. and cuba are not enemies, they're not rivals, instead we are neighbors." he called for an end to the embargo and he also welcomed american executives' efforts to do business here despite the embargo. in addition, in the audience there were a lot of cuban-american executives. the former ceo of kellogg and the former commerce secretary carlos gutierrez, born here in havana and returning to cuba for the first time since he left in 1960. >> this morning i woke up and i was joyful. i was happy to wake up in havana. this was an incredibly emotional to see our flag coming up in havana again, having cubans applaud. >> reporter: the building you see behind me is not new. it was actually constructed in 1953, purpose-built to be the u.s. embassy in havana. it wasn't in use for very long because diplomatic relations came to an end in 1961. u.s. employees left and the swiss were care takers of the building until 1977. then it became an intersection. that's what it was. until just last month. from '77 to 2015. there were american employees working inside. roughly 30 of them working on processing visas, et cetera. now that it is officially an embassy, part of the negotiation with the cuban government has been to increase the number of people working there. an additional 20 workers now have permission to work in the building. modern architecture, designed by the same firm that did lincoln center in new york city, if you're familiar with that building. >> powerful story in cuba. from cuba to brazil. check out what's been happening to the brazilian stock market. lower again today. this adds to a 16% slide over the past three months. consider that, folks. stock market of the world's seventh-biggest economy has fallen 16% in just 90 days. wow. if you ever's invested in the main brazil etf, ewz, which is the msci brazil etf, that's down even more. 20% alone since may. brazil, a story that we are watching. a breaking news alert now with kate kelly. >> major news out that tiger manage, the family office run by julian robertson, taking a stake in lumber liquidators. the stock moving way higher on that news. it's down 80% year to date on some negative reports about the quality of their flooring and some issues with their chinese business. but rallying on this news about julian robertson's private fund. shares -- he also slashed his netflix stake to 64,000 shares from a previous half a million shares that had been his number one holding, as well cut a stake in apple to 310,000 shares, down from 325,000. cut an allergan shares to 44,000 from 73,000. eliminated a more than 6,000 share stake in alibaba. >> big news there, dropping out alibaba with be swapping in the beaten up lumber liquidators, ll. classic cars with serious star power up for auction in california. robert frank with the job i'm most jealous of in all the world. joins us with a preview. robert. oh, wow. >> this 1967 porsche was once owned by jerry sign field. we'll show you the pope's fer r rferari. after the break live from sunny pebble beach. a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. want bladder leak underwear that try always discreet underwear and move, groove, wiggle, giggle, swerve, curve. lift, shift, ride, glide, hit your stride. only always discreet underwear has soft dual leak guard barriers to help stop leaks where they happen most and a discreet fit that hugs your curves, you barely feel it. always discreet underwear so bladder leaks can feel like no big deal. because hey, pee happens. get your free pair and valuable coupons at always discreet.com let's get to a little bit of a different kind of car story, some classic metal with serious star power all up for auction this week in california. right back out to robert frank who's live at the pebble beach concourse elegance. >> this is a 1967 porsche once owned by jerry seinfeld that could sell for up to $2 million. all part of the celebrity car craze here at the richest week in car collecting history. some other cars here include steve mcqueen's porsche, the last car that he purchased. it is up for sale. it is a 1976 turbo carrera. could top $1 million. there are two famous ferrari. one is the pope's, a 2005 enzo given to pope john paul ii. he november drove it. i gave it to charity. it sold last night for $5.5 million. the white car driven by sonny crockett could sell up to $1 million. jay leno is selling a mustang shelby for charity. he says buyers should beware of some star cars, especially movie cars. >> you want to be careful with movie cars. you know. like when you buy a dog and they tell you the mother's lassie and the fa the father's are rintintin. >> he said this is a very desirable porsche. brian, i'm looking right across the way, there is a toyota for sale for $1 million proving your investment thesis from three years ago is coming true, even the japanese cars now reaching seven figures. back over to you. >> it's cool to be right. its it suction that i don't have the money to do anything about being right. am i allowed to say "sucks"? >> you just did. catch the premier of jay leno's garage on wednesday october 7th, 10:00 p.m., right here. he has about 138 cars. i think just as many or even more motorcycles. he'll laugh and look at many so of these cars. mr. leno, if you're out there, invite me on. any time. final oil trades are crossing for the week. >> we're looking at oil prices at $42.50 right now. traders are telling me that we saw some short coverings, some buying of the ditch. that's probably what's moving us into the weekend here. but a couple of other factors that you need to watch. i'm going to set you up for oil trade next week. stay with "power lunch." i'm courtney reagan. here's your cnbc news update. ford is dropping contra fund, pulling an estimated $900 million from fidelity investments' flapship mutual funds saying the change could happen next month. another brush fire burning in california prompting a dramatic rescue this morning. firefighters had to climb down a huge embankment to rescue a driver who flipped over a guardrail. he was airlifted out of the canyon. authorities are being loo being into the possibility that golfer phil mickelson was tipped off about a 2012 spinoff from dean foods. mickelson was asked about it at the pga championship. >> do you have any comment on the dean foods story? >> i don't. but it seemed like it was the same as it was a year-and-a-half ago. i didn't really see anything new. >> does it affect your preparation here? is it wearing on you? >> no, because i know how inaccurate so much of that stuff is. i'm not worried, no. >> the white house launching an official channel on spotify that features play lists from president obama. his picks include songs from van morrison, ray charles, an al green. that's a cnbc news update at this hour. now to kate rogers with a "market flash." lumber liquidators is taki g taking -- shares spiked up as much as 10% on the day. right now up 8.5%. oil making a turn lower into the close. we may end negative. jackie deangelis is at the nymex. getting weak to end the week. >> that was a really interesting move we were watching at the close but we did settle at $42.50. buying dips here, short covering, i mentioned those but traders saying the fact that we tested those new lows, $41.35, very significant an very bearish. a lot of times traders like to square their positions when they go off for weekend but monday when we come back is when we could see potential weakness come back. adding rigs is bearish, not a good sign. we did have a little bit more dollar strength today as well. that's something to watch next week, too. back to you. stocks have been stuck this year. the dow down about 2% but has barely moved, in fact it is down .8% over the last 90 days. what will it take for stocks to break out of their range? let us ask the "trading nation" team, takaty stockton, erin gib. erin, fundamentally what's it going to take for stocks to move either way? >> all right. so i see three things. one is we've got to get out of the summer doldrums. let's just say we wait until august. typically markets go up. the second valuations -- i do see that market's going up because the s&p 500 has been trading at 17 times forward earnings to 17.8. really trite range for the past six months. right now we're just at 17. i see this actually as a good time to get in. lastly, even though q2 earnings came out really well, lots of beats, earnings growth went from negative 4% to 4%. really good movement be with the calendar year '15 stayed pretty flat. expectations have been pretty flat for the year. only when we look at 2016, energy depression is sort of flushed out of the market is when i think we'll see the market move up. >> katy, how does the s&p 500 chart look to you? >> it's obviously been range bound for months. if you think about a tradesing range it is really created by a tug-of-war between winners and losers out there. what i think needs to happen is for losers to stop losing. looking at areas like the energy sector, materials sector, industrials which are so deeply oversold at this point. finally we're seeing a very subtle uptick in short term momentum there. once we see those areas bounce, we'll see confidence restored to the market. that might be what the s&p 500 needs to break out from its range. we do have some counselederfund indicati -- countrafund. >> is there any sign to you that any time soon you'll see a breakout? >> a lot of names have not taken out support levels on their charts so when you see these oversold conditions return without breakdowns, that tends to be a good thing. >> erin gibbs, katie stockton, good analysis. thank you very much. global blood therapeutics launching its ipo on wednesday and doubling immediately in its debut before leveling off. stocks still higher though since going public. the drug developer's main product is a treatment for sickle cell disease which the company hopes will prevent the deformation of red blood cells. meg htirrell joins us with the ceo. >> you guys say that your drug has the potential if it works tore halt the progression of sickle cell disease. tell us about the need in this disease. >> this is a terrible disease. it's actually fairly common. it affects primary african-americans in the u.s. but it can affect anyone that gets the genes. 1 in 400 african-americans. it's devastating. lots of pain. lots of suffering and about two to three decades of life taken away from those individuals who are born with this disease. >> another company, bluebird, has been getting a lot of attention for its gene therapy potential cure. it's very, very early, they've only treated one patient. how does your drug fit into a potential cure. >> i think it most important that these patients have options. as a physician that's what i'm excited about because i used to treat them and they had no options. i do think however while gene therapy is very exciting, a pill once a day is going to be a very attractive option for people to try as their first attempt to deal with this disease. >> in your ipo you guys doubled on the first day. your stock has continued to perform up. it's up i think 9% today. how are you looking at the health of the biotech market from the overall perspective? you've been in the industry for a while. >> i think it is a great industry. it has its ups and downs obviously. but i think over the past couple of years we've really had lots of innovations in cancer and now sickle cell disease. gene therapy you mentioned. so it is a very exciting era and i think it will continue to innovate and be a source of great growth. >> dr. love, we'll have to have you come back and join us another time soon. thanks, brian. still ahead, the one social media stock a noted investor says you have to own. plus, can you answer our trivia question? the first baseball player to ever earn more than 1 million per season is -- we're going to tell you his name and why we bring it up ahead. stick around. nrp a >> announcer: and now the latest from tradingnation.cnbc.com and a word from our sponsor. you focus on making great burgers, or building the best houses in town. or becoming the next highly-unlikely dotcom superstar. and us, we'll be right there with you, helping with the questions you need answered to get your brand new business started. we're legalzoom and we've already partnered with over a million new business owners to do just that. check us out today to see how you can become one of them. legalzoom. legal help is here. aa chance to try somethinglook. different. this summer, challenge your preconceptions and experience a cadillac for yourself. take advantage of our summer offers. get this low mileage lease on select ats models, in stock the longest, for around 269 per month. new citracal pearls. dedelicious berries and cream. soft, chewable, calcium plus vitamin d. only from citracal. scary video just in from provincetown, massachusetts. look in the middle of that picture. see that big fin sticking out of the water? that is, we are told, a great white shark and a big one. looks like he is slowing down for food. yeah. you can see from those people, this shark is not only big, it is not very far off the beach. again, provincetown. right on end of the hook of cape cod. martha's vineyard nearby is where "jaws" was filmed. that's a big shark. that's scary video right there. melissa. brian, two big social media stocks going in very different directions. facebook up more than 20% so far this year. twitter is down about 19%. what is the best way to play social media stocks right now? joining us now here? san francisco, dan niles, founding partner with alpha one capital partners dan, good to see you in person. >> good to see you in person, too. >> first, talk about what you thought was a real wake-up call for the markets and for social media. that was disney. what happened with disney. it got crush. >> i mean disney was one of those stocks where people thought it was untouchable with their sports network, with espn and with a wide variety of revenues from different sores. he even disney talked about the fact they lost subscribers from espn. that really gets advertising dollars moving from television which is about 40% of all ads toe intern internet. >> that bolsters your thesis essentially on a name like facebook. at the same time you think while you're hedged in facebook there could be better opportunities. what's happening in this space? >> i think in general if you look at the market as a whole, for four years, since october of '11, we haven't had a 10% correction in the s&p so people have been sort of able to keep driving all of these stocks higher and assume that's just a temporary issue and the multiples have just kept expanding. what we've seen now is that businesses are slowing for everyo everyone. even companies considered untouchable like disney, they're having some issues. now you are starting to see bad news start to get treated like bad news. going into the summer, in general economies are getting worse. china, europe is struggling still, even u.s. we're seeing pockets of weakness. >> at the same time you've taken the opportunity to start nibbling on some of the chinese internet stocks that have been absolutely crushing. they're sort of in the crosshairs of high multiple stocks but also areas exposed to china and we know what's going on there. >> yeah. we're -- nibbling is the right word. we've been nibbling on baidu after they reported. we've been nibbling on alibaba after they reported. if you look at it, search still going to grow a lot in china. right? there are still a lot more people who are going to come on to the internet. it is kind ever where google was a decade ago, let's say. you loo being at commerce as well. with somebody like an alibaba. yes, they're interesting problems right now but mobile's continuing to grow. monetization is improving. we think it is important to get to levels where we start taking a very small position. we're looking to'd add but we think there will be better opportunities deeper into the summer. again, the stocks got crushed because business wasn't good. that's what you need to focus on. >> dan, unfortunately, got to leave it there. thanks so much for joining us. melissa, thank you. take a look at the top salaries for major league baseball players this year. a little sports trivia for you. who was the first player to make more than $1 million a year in his contract? we'll tell you who it was and why it matters. have we reached peak athlete pay? "power lunch" back in two. let's answer our trivia question. in 1979, the great pitcher the nolan ryan, became the first player to make more than $1 million a year. he signed a four-year, $4.5 million deal. in today's dollars, that would be about $15 million. or just about $3.75 million per year. by the way, astros fans, this is the greatest jersey ever made. but consider this. according to spot track, there are now 79 pitchers in baseball that are making more than nolan ryan did per year in today's dollars. in fact, there are 18 pitchers now that make more per year than nolan ryan made in that entire contract in 2015 dollars. insane. it is mostly because of huge tv deal revenues, but as cord cutting speeds up, is the age of the billion-dollar sports deal over and with it have we reached peak athlete pay? michael ozanian with us to discuss it. i hope i made some sense with that. i wrote about it on my facebook page. if tv deals come down, michael, do you think today's athletes are the highest paid that we will see in our lifetime? >> first of all, brian, i love you, but tv deals are not coming down. the st. louis cardinals just last week finalized a new tv deal with fox sports west for $1 billion on an annualized basis, more than twice its existing deal, and that deal consult kick in until 2018. and also, we're starting to see the other sports leagues, like the nfl in particular, capitalize on the fact that people are watching more sports on mobile devices. for instance, they're doing it through verizon, direct tv, which is now owned by at&t as a package, where you can watch the nfl, without having a cable deal. i've got to tell you, there's going to be over 100 pitchers in major league baseball within five years that made more than nolan ryan did. >> so even if we see, let's call it, 10 million fewer traditional cable subscribers and i'm just making that number up, in the next five years, michael, you still think that these big old contracts are continue to roll on, and thus, athletes that are not picking on dez bryant, yet he's making more per year, basically, than jerry rice made in one of his record-setting contracts in today's dollars. >> as much as it hurts me to say so, absolutely. the reason, brian, is the real value is in the athletes and the content of sports, not the means by which you consume that content. so unless you believe, which i don't, that people will be able to get this content for free, then you also have to believe that the value of players' salaries is going to continue to escalate. >> do you think the old players look at some of these new deals, michael, and go, this is just -- do you think there's a little bit -- i mean, they've got to just be like, wait a minute, i was way better than that guy in many day and he's making five times more than me in current inflation-adjusted dollars. do you think they're just sitting on the couch wanting to throw a rock at the television or mac book, whatever they're watching on? >> you know, i think many of them -- i mean, i certainly would be tempted to do that if i had been playing back then. but i think it's more a function of the fact that the players, 30, 40 years ago, before there was free agency, they were grossly underpaid, as opposed to the players today being overpaid. look, the leagues generally pay out half of their revenue to the players. it's kind of a partnership, if you will. so the owners are doing much better as well. just look at the dodgers two years ago, sold for $2 billion, okay. if you go back, who would have thought that -- certainly not when the team used to play in brooke lylyn and they were maki pittance compared to today's players. >> and you have baseball players, i'm not going to name any names, but they are like average pitchers, i could probably hit them three out of five pitches, and making $15 million. >> these guys only have to pitch six innings and it's a quality start. i'm revealing my age, but when i was growing up, you were supposed to pitch nine. can you imagine going to bob gibson and saying, you can pitch six, that's enough. >> michael, thank you much. we'll be right back after this. you totalled your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. and for drivers with accident forgiveness,rates won't go up due to your first accident. learn more by calling switch to liberty mutual and you can save up to $509. for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom- some expect to cut dropout rates by twenty-five percent. ibm analytics is working to make education smarter every day. time now for street talk. analyst's recommendations on stocks you need to know about. a bi-coastal edition, east coast, west coast. kinder morgan, a little disagreement over this stock, not really. they see a 50% total return to their $48 target over a year, with the 6% yield. they call it a safe haven. but pickering kind of disagrees. they cut their rating, but cut it to a buy from a cumulate. they're concerned about backlog growth and m&a opportunities. they saved $5 off the kmi price target. >> accumulating is buying, isn't it? last i checked. dupont heading a upgrade over jpmorgan. upgrading from an overnight what to a neutral rating. the analyst saying, although there's a lot of negative factors, the shares appear to be undervalued, especially when you compare it to other agricultural companies. >> and another activist play here. stock number three, all you whole foods investors, listen up, because pivotal research starting their coverage of the stock with a sale rating. the analyst there sees no signs of stabilization in the near term and says he thinks same-store sales could turn negative early next year. also, know, we've had some insider selling on whole foods executives. that stock at a new 52-week low. >> kudos for an analyst making a bold call with the sale initiations. rare on wall street. cyberark getting a sale on wall street. upgrading the stock. the analysts also boosting the price target from the low end of the $65 range to the high end of $73. >> yeah, nice move there. all right, radius health. this is an unbelievable company. i don't know if you've talked about it on fast money, melissa. it's our under the radar name. massachusetts-based biotech working on osteoporosis drugs. deutsche bank starting with a buy and $90 target. that implies about 35% upside. but consider this. it's a stock that's already up more than 400% over the past 12 months. the average target of seven analyst who is cover it is $77.16. that's a 400% gainer. and deutsche bank putting a $90 target on a $65 stock. unbelievable! >> yeah. interesting, though, that the stock is trading down on the session, though, bri, so could be the investor sentiment turning on biotech overall. meantime, brian, i am out here in san francisco, so it is going to be yet another special edition of "fast money" tonight at 5:00 p.m. eastern time. so we're going to ask silicon valley veteran roger mcnamee what he thinks about the skyrocketing evaluations in the private market. and we've also made one trader be a lift driver, brian, and got a tour with a million-dollar listing broker. a lot of fun stuff tonight at 5:00. >> and trust me, i have no stake in the place, little italian place in the plmarina district called a-16. >> thanks for the rec. >> melissa, have a great time. see you next week. just to wrap it up, this video from provincetown, mass, you got to see it. don't know if that was a great white. this was apparently last night, not this morning. giant shark, 20 to 25 yards off the beach. folks, be careful out there. that is incredible video. maybe two sharks. "closing bell" starting right now. have a great weekend, everybody. we'll see you monday. well, we're whale watching out here as the 13f filings keep rolling in. i'm kelly evans here at the new york stock exchange. >> i'm bill griffeth. oil prices are higher again today, but oil down 20% in the last month, okay? yet, gasoline prices are soaring in some parts of the country. we'll identify the reasons for that, that refinery issue in the midwest, get to that story, coming up in just a moment here. >> an incredible divergence. and biotech, a huge winner so far this year. eli lilly ceo says